Latest News

Energy Prices (early June 2015)

Early June 2015

Electricity:  SSE have announced that the coal fired 1000 MW Ferrybridge C power station is to close by the end of winter 15/16. This comes just two months after the Longannet and Ironbridge were confirmed to be closing within the next 12 months. In total this removes 3,400 MW of generating capacity.

The transmission operators association, Entso-E released a new report showing that European electricity usage fell by 2.4% in 2014 and that nearly 1/3 of electricity generated was from renewable sources.

Gas: The insurgency of ISIS in Iraq continues to be a concern for oil prices. If they gain control in oil producing regions, prices will surge, potentially over $100 per barrel.

Planned outages and maintenance of several UK and Norwegian gas fields and processing facilities will limit imports over the summer, this could limit supply and push prices upwards.

The main gas interconnector with Europe will be closed for maintenance in mid-June, the pipe is usually exporting gas at this time, so closure could leave the gas isolated in the UK, creating local abundance and keeping prices down.

Following improved efficiency in extraction and productivity in the US shale oil sites, Goldman Sachs have reduced their crude oil price forecasts for the coming five years.  They are predicting an average price of $65 per barrel until 2018, then $55 per barrel by 2020.

Summary position:

Oil $65.16barrel

Coal $58.20/MT

EUA 14 €7.48/TCO2

Gas 46.15p/th Oct 15

Gas 47.25p/th Apr 16

Electricity £44.2/MWh Oct 15

Electricity £45.75/MWh Apr 16